Food (62%) and transportation (40%) are the primary expenses for Ghanaians, a research by auditing firm, KPMG titled “2023 KPMG West Africa Banking Industry Customer Experience Survey shows.

These categories, it said, align with inflation drivers in Ghana, such as food prices and transportation fares, particularly fuel prices.

Consequently, consumers have strategically adjusted their spending patterns and embraced various strategies to optimise their budgets for long-term savings.

Thirty-five percent of respondents indicated savings and investments as one of their top priorities - the third highest, highlighting a resilient savings behaviour despite economic pressures.

Notably, 92% of respondents affirmed their commitment to saving. However, only one in five is able to set aside more than 20% of their income, signaling that rising costs have eroded disposable incomes.

In response to this challenge, some Ghanaians have turned to saving in foreign currencies to safeguard the value of their money, it stated.

18 to 25 years spend more on food, airtime

Similar to their Nigerian counterparts, the research revealed the spending patterns of individuals aged 18 to 25, indicating significant allocations to categories such as food, airtime & data, transportation, education, and personal care.

To foster loyalty among these young customers, the research said banks could consider implementing reward programmes linked to specific transactions or spending thresholds. This could involve offering complimentary airtime, discounts on ride-hailing services, or vouchers for frequently visited restaurants and food vendors.

“Such initiatives could enhance customer retention and engagement within this demographic. For more affluent banking customers, those earning over ҃¢20,000 monthly, our survey found that their primary expenditure focuses on savings and investments. Remarkably, approximately 81% of these customers save over 20% of their income, while around 43% allocate more than 20% towards investments”.

This, KPMG, pointed out presents an opportunity for banks to provide tailored investment guidance to assist these clients in preserving their capital amidst competing financial demands.

Meanwhile, it indicated consumers are adapting to manage their expenses by embracing alternatives, such as opting for more budget-friendly brands. Additionally, there is a noticeable shift in household spending priorities from non-essential categories towards essential ones